According to SMM Steel, iron ore stocks at 35 ports stood at 130.99 million tons as of January 18, up 1.69 million tons from 129.3 million tons last week. The number of ships arriving at the main ports in Shandong and most of the ports along the river increased, and the port inventory began to pick up.
The average port dredging capacity this Sunday continued to increase by 178000 tons to 2.705 million tons compared with the previous week, and the replenishment capacity of steel mills continued to be released this week, and the dredging capacity of major ports in all regions has increased. Recently, Tangshan steel mills began to replenish the warehouse one after another, and this week the growth rate of Jingtang and Caofeidian sparse port was more obvious than that of the previous month. According to SMM, the number of ships arriving next week may continue to increase, but next week there will still be demand for replenishment in steel mills, and the port will be sparse or continue at a high level.
[weekly Price Review]
This week, driven by pre-festival replenishment of steel mills, port spot prices fluctuated upward, leading the increase in low-grade mine prices. Shandong and Tangshan PB powder Friday offer month-on-month increase of 10 yuan / ton. Super Special Powder quoted 400 yuan per ton on Friday, up 35 yuan per ton from Friday.
The MMi 62 per cent iron ore port spot price index closed Friday at 576 yuan per tonne, unchanged from the previous week; the MMi 62%CFR price was $75.89, up $0.273 from the previous week.
According to data followed by SMM this week, a total of 73 ships arrived at China's ports from 1.11 to 1.17, with an estimated arrival volume of 10.67 million tons, an increase of 1.14 million tons over the previous forecast of 9.53 million tons. Shandong major ports are expected to increase. During the period, Australian port departure is expected to increase by 560000 tons to 14.91 million tons, Australian port maintenance has come to an end and departure has begun to resume; Brazil is expected to drop 180000 tons to 7.52 million tons.
In terms of current port stocks, total powder stocks in Qingdao, Rizhao, Jingtang, Caofeidian, Tianjin and Lianyungang increased by more than 10 million tons, or 12.5 per cent, this week compared with last week. According to the variety, the current inventory of the mainstream varieties in the 6 ports is SFLA, Mike powder, FMG mixed powder, Vaca, Roy powder, PBpowder, and the smaller increase is mainly Newman powder and super special powder. With the recent increase in the number of ships, the inventory of medium and low-grade ports began to rise, and the pressure on the supply side began to accumulate.
[summary of requirements for one week]
SMM sparse port data show that steel mills pre-festival replenishment this week continued to incremental release, the demand side performance is eye-catching. At the same time, according to SMM follow-up understanding, some steel mills still have procurement demand next week, especially Tangshan steel mills next week replenishment or continued, is expected to sparse Hong Kong or maintain a high level; therefore, the import mining market is expected to continue next week or continue high volatility.